Henkel: Fast moving company

Whether it’s getting ready for a night out, doing the laundry, or even just sealing an envelope, the chances are there’s a Henkel product involved somewhere in the activity. While the company name may not earn immediate recognition, its brands, from Purex detergents and Schwarzkopf hair products to the original Sellotape, are well known in the markets they serve. They have helped Henkel to expand its presence in the fast-moving consumer goods and industrial adhesives sectors throughout the globe – but particularly in the Asia Pacific region.

Jan-Dirk Auris, Regional President, Henkel Asia Pacific, says that success has been no accident. A carefully developed corporate culture, with a focus on HR, has been instrumental to the group’s growth. People are the foundation of Henkel’s business,” he tells HRM. “We have 52,000 people worldwide – 10,000 across Asia – and every one of them plays a valuable role in driving our company forward.”

In Asia Pacific, the company maintains a unique focus on China. While similar organisations will naturally head to Hong Kong or Singapore to build a base of operations, Henkel has chosen Shanghai for its regional headquarters. Auris acknowledges this brings about some unique challenges, but these are dwarfed by the advantage of being at the heart of Asia’s powerhouse economy.

A very people philosophy

Auris says Henkel’s strong philosophical focus on its staff and stakeholders has been adapted well in the Asian environment. The group’s global strategy – to place customers at the centre of all business, to continually strengthen the global team, and to achieve full business potential via empowerment of staff – gives it a strategic edge in the local hiring markets, he says. “These are our top business priorities – and the common theme in each of them is the central role that people play in achieving those goals,” he notes.

Importantly, candidates and current staff respond well to the empowerment principles in particular. “From the very first day at Henkel, employees will be given responsibility in one of our business units or functions and can begin exerting a direct influence on our performance,” he said. “In Asia-Pacific the personal impact might be a little bit bigger.” This is because as a still-developing market, there is more room for high-potentials to rise quickly up the corporate ladder. “I’m quite proud that we have many young managers in the region – not much older than 35 years old – that have responsibility for around 150 people and sales of about €50 million (S$103 million).”

Auris says this has been a reflection of how the business has developed over twenty years in the region, with rapid expansion occurring particularly during the current decade. “Twenty years ago, our business in this region was worth roughly €50 million. Today it is far beyond €1 billion annually.”

A China HQ

Being based in Shanghai brings both advantages and challenges to Auris’ typical work day. But first and foremost it is the pace of change that inspires him to believe that anything is possible – both in China and the Henkel organisation. “In looking at our business, it has grown in step with China. Since entering mainland China, we have almost increased our revenue tenfold annually,” he says.

Alongside the headquarters, Henkel boasts a research and development (R&D) facility in Shanghai. “We continue to see strong opportunity in the market,” he adds.

But it’s not just the legions of consumers that attract the company. Auris says the talent available is also strong, and helping to further develop the group’s presence. The R&D Centre is a way to really leverage the top talent in China – to develop new and innovative products for the local market as well as globally,” Auris says. However, there are challenges in recruiting the exact types of talents required. “Though there is a very large supply of labor or graduates on the market, recruiting the right high potentials that are the right fit for a multinational is still a challenge,” he says. “We require outstanding English language skills and an international focus.”

Auris relies on a strong local HR team to overcome this challenge. “We have a very focused HR function that works closely with local universities and is continually assessing candidates for opportunities within our business,” he says. “We have very high standards and are very focused on identifying those individuals with the right values that fit with our company.”

Recruiting the best

Whether it is in China, elsewhere in Asia, or anywhere in the world, Auris says there are particular skills and attributes that he and hiring managers look for when considering new Henkel blood. It’s not just the ability to do the assigned role; rather Henkel looks for all-round prospects and the willingness and ability for the candidate to grow with the organisation.

“We always look for people with initiative and who are proactive problem-solvers,” he says. “And we look for people with good values and those that are aligned with our corporate culture. Furthermore, people should show a strong willingness to win and be committed to reach or outperform their targets.”

The company’s focus on diversity also plays a role. “For Henkel, this means ‘multiplicity of people types within the company’ – and it is an important factor for our corporate success globally,” Auris says. “We look for people not only from diverse backgrounds but also with diverse skill sets and thinking.

“That is a key factor that we believe translates into more creative ideas, more challenging of the status quo and continually pushing to identify how to solve problems for our customers or create new opportunities for our businesses.”

Then, making them even better

Once recruited, Henkel doesn’t let its staff go idle. Auris says he and his HR team are constantly looking for ways to further develop the staff skill base, whether it is through direct training, mentoring or career advancement. One notable training programme is the “Triple2” scheme, in which staff are cross-trained across multiple disciplines.

“It offers employees a multi-dimensional assignment in two different functions, marketing and sales or research and development for example,” Auris says. “They get experience in two different divisions, such as detergents and cosmetics, or purchasing and HR management, and to work in two different countries and cultures.

“We believe this can contribute to our employees’ further development and continually offer new perspectives and experiences for them to draw upon during their career.”

In this way, the company expects and counts on a great deal of longevity from its best employees. The focus on career development, where these high potentials are continually pushed to try new and challenging assignments, is an instrumental part of its HR agenda. Auris holds himself up as a prime example. “I’m living proof of this,” he says. “I have held positions with Henkel in Europe, North America and Asia; each role providing different challenges and opportunities. This has kept me engaged and inspired during my career here; and this is why I believe we are able to attract and retain the best talent in the industry.”